Global-Tech Advanced Innovations Announces Fiscal 2013 Results

Global-Tech Advanced Innovations Inc. (NASDAQ: GAI) today announced its
financial results for the fiscal year ended March 31, 2013.

Net sales for fiscal 2013 were $81.1 million, an increase of
approximately 16.4% when compared to net sales of $69.7 million in
fiscal 2012. Net loss for fiscal 2013 was $2.0 million, or $0.65 per
share, compared to a net income of $1.4 million, or $0.46 per share, in
fiscal 2012.

Net sales for the fourth quarter of fiscal 2013 were $13.9 million,
compared to $15.5 million in the corresponding period in fiscal 2012.
Net loss for the fourth quarter of fiscal 2013 was $2.3 million, or
$0.75 per share, compared to a net loss of $1.5 million, or $0.51 per
share, for the corresponding quarter in fiscal 2012.

Despite incurring losses in fiscal 2013, the Company’s cash flow
remained positive as our net cash position increased approximately $1.9
million to $42.2 million, primarily due to a significant reduction in
accounts receivables, partially offset by capital expenditures. Net cash
(a non-GAAP measure) is defined as cash and cash equivalents plus
restricted cash less short-term debt (a GAAP reconciliation has been
provided below). In providing our net cash position, we believe our
shareholders, as well as potential investors, gain a better
understanding of the Company’s potential for future growth and are
better able to assess the Company’s financial strength and available
resources.

SG&A expenses in fiscal 2013 did not increase materially from fiscal
2012 when discontinued operations are included and most of the increase
was due to exchange rate appreciation of the Renminbi against the U.S.
dollar.

John C.K. Sham, the Company's President and Chief Executive Officer,
said: “The Company’s fourth quarter continues to be our weakest quarter,
due at least in part to business disruptions relating to the Chinese New
Year. Rising labor costs coupled with labor shortages in southern China
negatively impacted our operating results. The developing slowdown in
the Chinese economy also adversely impacted our business, most
significantly in our EMS segment.”

Mr. Sham continued, “We are striving to address these and other cost
issues, including certain manufacturing costs previously absorbed by our
home appliance business prior to its discontinuation in January 2012. As
part of these efforts, we have started to lease some of the unused space
in our manufacturing facility that was previously occupied by our home
appliance business. However, we do not expect our efforts to adjust our
cost structure will have a material impact on our operating results
until the second or third quarter of fiscal 2014, at which time we
believe we will return to profitability. Until such time we expect our
net cash position to continue to remain strong.”

Mr. Sham concluded, “As previously disclosed, the expansion of our CCM
production capacity through the installation of three chip-on-board
(COB) production lines and a Class 10 clean room was recently completed.
We are pleased to report that our CCM business has started receiving
orders that require the use of our new COB production lines. Since COB
production lines are capable of producing higher-pixel camera modules
and other precision-related devices, we believe that our CCM business
will continue to grow through the addition of new customers and the sale
of higher profit margin products. As such, we are cautiously optimistic
about the growth opportunities of our CCM business and expect our CCM
sales to increase and profitability in this business segment to
gradually improve in the coming months.”

Global-Tech Advanced Innovations Inc. is a holding company, owning
subsidiaries that manufacture and market a diversified portfolio of
products, such as complementary metal oxide semiconductor (CMOS) and
camera modules (CCMs). The primary focus of its subsidiaries is to
develop and market high-quality products for the communications industry
in China and export such products to markets in other countries
throughout the world.

Except for historical information, certain statements contained
herein are forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. Words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," “should,” "estimates," or variations of such words
and similar expressions are intended to identify such forward-looking
statements. These forward-looking statements are subject to risks and
uncertainties, including but not limited to, the impact of competitive
products and pricing, demand for new and existing products in our core
business, the financial condition of the Company’s customers, product
demand and market acceptance especially of our new products, the success
of new product development especially in the area of cellular phone
components and solutions, compact camera modules and other pending
projects, reliance on material customers, suppliers and key strategic
alliances, the terms and conditions of customer contracts and purchase
orders, availability and cost of raw materials, the timely and proper
execution of certain business plans, including the plan to diversify and
transform a portion of manufacturing capacity to higher-value,
technology-oriented products, currency fluctuations, including the
revaluation of the Chinese Renminbi, the imposition by China’s trading
partners of economic sanctions and/or protective tariffs on Chinese
manufactured goods, uncertainties associated with investments, the
regulatory environment, fluctuations in operating results, the impact of
changing global, political and economic conditions and other risks
detailed from time to time in the Company's filings with the U.S.
Securities and Exchange Commission including its most recent Report on
Form 20-F.The Company does not undertake to update its
forward-looking information, or any other information contained or
referenced in this press release to reflect future events or
circumstances.

GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts expressed in United States dollars, except per share data)

Year Ended

March 31,

2013

2012

2011

(audited)

(audited)

(audited)

Net sales

$

81,083,384

$

69,652,705

$

57,468,866

Cost of goods sold

(70,817,320

)

(59,008,973

)

(50,403,138

)

Gross profit

10,266,064

10,643,732

7,065,728

Selling, general and administrative expenses

(16,254,968

)

(10,612,458

)

(11,317,767

)

Other operating income , net

-

28,589

1,137,580

Operating profit (loss)

(5,988,904

)

59,863

(3,114,459

)

Interest income, net

1,504,166

95,477

536,187

Other income (expenses), net

845,806

1,116,279

370,274

Income (Loss) from continuing operations before income taxes

(3,638,932

)

1,271,619

(2,207,998

)

Income tax benefit (expense)

841,900

(1,228,625

)

(204,122

)

Income (Loss) from continuing operations

(2,797,032

)

42,994

(2,412,120

)

Income (Loss) from discontinuing operations, net of tax

725,773

1,374,342

(1,775,879

)

Net income (loss)

(2,071,259

)

1,417,336

(4,187,999

)

Net income (loss) attributable to non-controlling interests

107,958

(6,659

)

175,028

Net income (loss) attributable to shareholders of Global-Tech

Advanced Innovations Inc

$

(1,963,301

)

$

1,410,677

$

(4,012,971

)

Basic and diluted earnings (loss) from continuing operations per
share of common stock